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Proposed Personal Income Tax Rates and Thresholds

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Here are some tables setting out the current rates for 2020/21 and 2021/22 and also what that means in terms of tax payable. As non-residents are taxed differently, we've also included tables showing the tax rates for foreign residents.

Personal income tax rates and thresholds

Australian Residents

    2020/21 and 2021/22
  Threshold Rate
1st Rate $0-$18,200 0%
2nd Rate $18,201-$45,000 19%
3rd Rate $45,001-$120,000 32.5%
4th Rate $120,001-$180,000 37%
5th Rate $180,001 45%
With Medicare levy included, the top marginal rate is 47%.


Tax rates and thresholds summarised

The tax rates for 2020/21 and 2021/22 (excluding the 2% Medicare levy) are as follows:

2020/21 and 2021/22 income year
Taxable income ($) Tax Payable ($)
0-18,200 Nil
18,201-45,000 Nil + 19% of excess over 18,200
45,001-120,000 5,092 + 32.5% of excess over 45,000
120,001-180,000 29,467 + 37% of excess over 120,000
180,001+ 51,667 + 45% of excess over $180,000

Non-residents (foreign residents)
Taxpayers who are not Australian residents are taxed at different rates.
The current rates for non-residents for 2020/21 and 2021/22 are:

2020/21 and 2021/22 income year
Taxable income ($) Tax Payable ($)
0-120,000 32.5%
120,001-180,000 39,000 + 37% of excess over 120,000
180,001+ 61,200 + 45% of excess over $180,000

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